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British Business Bank Investments Ltd announces £10m commitment to new £260m technology fund

8 November 2016

British Business Bank Investments Ltd, the commercial arm of the British Business Bank, today announces its £10m investment in a new £260m limited partnership fund raised by Scottish Equity Partners (SEP).

The investment is being made under British Business Bank Investment’s VC Catalyst fund, which has now made total commitments of £80m in 9 Venture Capital funds since its inception in 2013.

The SEP V fund will be invested in high-growth companies based mainly in the UK. It will pursue investment opportunities of up to £20m in growth-stage technology companies led by ambitious management teams, where SEP can build value and optimise investment returns by playing an active and supportive role in their development.

Catherine Lewis La Torre, CEO of British Business Bank Investments Ltd, said: “It is hugely important that technology businesses get the investment and support they need to scale up successfully in the UK.

“We are therefore delighted to be making this investment in SEP’s new fund, given their track record in helping technology companies to thrive and grow

SEP Managing Partner Calum Paterson said: “We are pleased to close this latest fund, which is another very positive step forward for the firm.

“We are delighted to have such a strong platform from which to continue investing and thank all our limited partners for their support, as well as the companies in our portfolio for all they have done to help us be successful. We are looking forward to announcing our first investment from SEP V soon.”

Scottish Equity Partners’ current portfolio companies employ more than 5,500 people and have aggregate revenues of over £1 billion. They include Edinburgh-based travel search company Skyscanner, London-headquartered high-end fashion business Matchesfashion.com, and online car finance specialist Zuto, which is based in Manchester. Non-UK companies in the portfolio include online eyewear company Mr Spex and language learning company Babbel, both of which are based in Berlin, and Dublin-based e-commerce analytics company Clavis Insight.

British Business Bank Investment Ltd’s VC Catalyst Fund supports funds that invest primarily in venture capital, helping them to scale. Its diversified portfolio includes life sciences, energy and resource efficiency across early and growth-stage technology businesses. The VC Catalyst Fund has so far leveraged more than twice its drawn capital for the benefit of fast-growing UK businesses.

British Business Bank Investments Ltd is the commercial arm of the British Business Bank. It aims to earn a commercial return by investing – through finance providers – in smaller businesses and small mid-caps, pursuing investments on a fully commercial basis without receiving any advantage from the government.

British Business Bank Investments Ltd is a wholly owned subsidiary of British Business Bank plc, the UK government’s economic development bank. Neither entity is authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).

British Business Bank plc and its principal operating subsidiaries are not banking institutions and do not operate as such. A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.

The Business Finance Guide, jointly published by the British Business Bank and the ICAEW’s Corporate Finance Faculty, is a unique, impartial guide that sets out the full range of options available for smaller businesses looking to raise finance – including venture capital. It also offers advice to help businesses plan for growth.

About Scottish Equity Partners

Scottish Equity Partners (SEP) is a leading UK venture capital firm. Operating from offices in London, Glasgow and Edinburgh, SEP makes equity investments of up to £20m in high growth technology companies.

The new fund will be invested in high-growth companies based mainly in the UK, although investments in other European countries will also be targeted.

2012

British Business Bank plc is the holding company of the group operating under the trading name of British Business Bank. It is a development bank wholly owned by HM Government which is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). The British Business Bank operates under its own trading name through a number of subsidiaries, one of which is authorised and regulated by the FCA. British Business Bank plc and its subsidiary entities are not banking institutions and do not operate as such. A complete legal structure chart for British Business Bank plc can be found on this website.